Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the City Budget topic
No spam. Unsubscribe anytime.
DBI outlines budget shortfall, deferred funds and steps to balance finances
Summary
DBI director told the commission the department faces an estimated $5.5 million deficit, is considering tapping deferred-credit funds with controller approval, and is trimming expenses while preparing a budget balancing plan for Jan. 28. The department also described an RFP for a joint permit-tracking system and plans to scale back BPR staffing assumptions.
At the Dec. 17 meeting the Department of Building Inspection reported a looming budget shortfall and described near-term steps to stay within charter constraints while seeking longer-term fixes.
Director Vivian Day told commissioners the department has drafted an RFP for a combined permit tracking system with the Planning Department and expects to publish it during January's RFP cycle. "We finished our first draft of the RFP for the combined permit tracking system for planning and building," Day said.
On finance, the director said DBI and the mayor's office and controller have identified a budget-balancing approach and will present a fuller plan to the commission on Jan. 28. The department is reviewing every expense line and attempting to increase collections of uncollected revenue. Day said staff had "cut to bare bones on the expenses" as part of the balancing effort.
Commissioners were told the department anticipates "roughly a $5 and a half million dollar deficit" and is exploring use of deferred-credits funds with controller and budget-office approval to avoid operating in the red, which the charter forbids. The director reported the budget office recently consented to a quarterly approach for returning deferred credits to operating funds.
Day also said the department processed about 50 refund requests in November that affected revenue; the refunds were concentrated in smaller homeowner projects that stalled as the credit market tightened. Commissioners pressed on whether layoffs were likely; staff said they are compiling division budgets and will have a clearer picture when all division requests and targets are collected.
On internal reforms, DBI said it is proceeding cautiously with Business Process Reengineering (BPR). A previously cited $6'$7 million first-year estimate included proposed staff increases that have since been removed from current planning; the department will attempt to implement BPR recommendations with existing staff and resource-neutral changes where possible.
Commissioners asked about contingency from potential stimulus tied to seismic retrofit work; one commissioner noted an estimated $250 million of potential seismic work that could boost activity in coming months if programs move forward.
